Massachusetts AG targets companies for faulty loan practices
Massachusetts Attorney General Martha Coakley issued two separate actions against financial companies and a law partnership in hopes of warning consumers about potential scams that attempt to take advantage of struggling homeowners.
The first action was filed in Suffolk Superior Court against iMod Corporation of Medford, Mass., and a related law firm, which agreed to pay $20,000 in restitution to consumers and the Commonwealth for allegedly charging illegal advance fees for loan modifications.
In the second action, Pinnacle Financial Consulting based in Lawrence, Mass., and its owner were sued for using the foreclosure crisis to allegedly scam homeowners and provide legal advice without a license.
"We allege these defendants preyed on distressed homeowners, often requesting advanced payment in violation of the law," Coakley said.
She added, "We continue to see many foreclosure and loan modification scams that prey upon borrowers who are desperately trying to save their homes. Homeowners should be aware of their rights and know that our office has resources available to help them."